- Why Do I Have To Pay Service Charges?
Why Do I Have To Pay Service Charges?
Service charges are collected to cover the running cost of the block in which your property is situated as well as common areas to the estate. These costs include:
- Leasehold Management
- Estate Cleaning
- Estate lighting
- Ground Maintenance
- Pest control
- General Maintenance
- Building Insurance
Each year Lambeth Council’s Homeownership, set the service charges for all home owners based on carefully calculated estimates of what the costs will be.
At the end of the year the costs are checked and Homeownership send out a statement of the actual accounts to all home owners, because the service charges are estimated at the start of the year, this can sometimes mean that home owners have been over charged or under charged.
We will always let home owners know as soon as possible about any variation in the service charges, and will notify you of our plan to rectify the problem. If there is a shortfall in the money we have received, we may send out an additional invoice or carry the amount over to the following year’s charges – depending on the amount of the shortfall.
If the service charge was too high at the start of the year and there is money left over, Homeownership would normally use that money to reduce the service charges for the following year.